BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
SBI Cards and Payment Services Ltd. reported average set of Q2 FY23 numbers (profit after tax at Rs 5.2 billion down 16.2% QoQ up 52.4% YoY) below our estimate of Rs 6.7 billion due to higher than expected provisions and opex.
Receivables at Rs 377 billion (our estimate: Rs 355 billion) grew healthy 13.6% QoQ/41.4%YoY, opex increased by 10.3% QoQ and rose by 32.6% YoY leading to cost-income rising to 59.4% from 56.3% in Q1 FY23.
Yields fell (decreased to 16.4% from 17.1% in Q1 FY23) as higher yielding revolver mix decreased to 24% from 26% in Q1 FY23 of overall receivables.
SBI Cards’ asset quality improved marginally with gross non-performing assets at 2.1% versus 2.24% in Q1 FY23.
Credit costs rose sequentially to 5.6% versus 5.0% in Q1 FY23 as impairments and losses increased sequentially by 21% to Rs 5.46 billion.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.